Apartment and Credit
May 17, 2017
Are you someone who has paid their rent on time at their apartment every single month and never see your credit improve? What most people don’t know is that rent is not something that is reported on by the credit bureaus. No matter how good of a tenant you have been, and no matter how on time you were with payment it doesn’t matter. Not to your credit in any case.
This can seem shocking to people especially since more and more landlords have started to pull potential renters credit before deciding on whether or not to rent. People apply for an apartment having a spotless rental history only to find that they have been denied due to some dings on their credit. So what can you do to ensure that your credit is never an issue?
Pay All Your Reported Accounts On Time
Things like credit cards, auto loans, student loans, medical bills, personal loans, mortgages, payday loans, and store cards all report to your credit bureaus. With payment history accounting for a whopping 35% of your credit score having any missed or late payment can drastically reduce your credit score and keep you from getting the apartment you want.
Keep Your Balances Low
Most people have heard of Debt-To-Income ratio which is something that most landlords are sure look at and is important but is actually not accounted for in the credit score. What is accounted for is the Credit Utilization Ratio. What this refers to is the ratio of how much available credit someone has versus how much of that credit they are using. The standard acceptable rate is 25% usage of the credit limit. Anything over 25% and the credit bureaus consider you a risk of maxing out and being unable to pay the minimum balance. This means if you have a credit limit on one card of $1000 you should never carry a balance greater than $250.
Don’t Have Too Many Open Store Accounts
This is something that seems easy but for most it actually isn’t. It seems that every store you go into offers their own store credit card promising discounts on future purchases. While this may seem like a good idea it can be trouble for several reasons. The first is that these cards usually come with high interest rates meaning that if you are unable to pay off your entire balance every month you can end up paying more than the sale price of the item even with the card discount. Another drawback to opening a store card is that if you do it too much the credit bureaus will view you as someone who is constantly trying to get easy credit and view you as a future payment risk. They will ding your score accordingly.
Seek Credit Repair
Doing all the things above are great ways to keep your score high but what if you already have poor credit? If that is the case you may need help of a credit repair company. Fortunately we are the top Credit Repair Firm in the country with highest verified deletion rate. Call Us at 888 799 7267
Now while we can’t guarantee specific apartment approval we do know that if you follow our advice you should be able to find an apartment that fits your budget.